Mahindra & Mahindra and Canada-based Manulife have agreed to form a 50:50 joint venture to set up a life insurance company in India, subject to regulatory approval. The move expands their existing partnership in financial services, marking another major bet on India’s under-penetrated insurance market.
Both companies plan to commit up to Rs 3,600 crore each, with an initial investment of Rs 1,250 crore over the first five years. Once regulatory clearance is received, the new entity will apply for an insurance license and begin building operations.
Kotak Investment Banking served as the Mahindra Group’s financial advisor, with AZB & Partners providing legal counsel. Debevoise & Plimpton LLP advised Manulife on the deal.
The partnership builds on the earlier success of Mahindra Manulife Investment Management, their 2020 joint venture in the mutual fund space. The new life insurance company will target India’s growing need for protection and savings solutions, particularly in rural and semi-urban areas.
“With a focus on leveraging technology, the joint venture will build an efficient, customer-centric insurer in India,” said Dr Anish Shah, Managing Director and CEO, Mahindra Group. “We are confident that this joint venture offers a very compelling opportunity to create meaningful value for our shareholders.”
Phil Witherington, President and CEO of Manulife, called it a 'significant milestone' in the company’s Asia expansion. “This will strengthen our diverse portfolio and position us for tremendous growth in a mega economy of the future,” he said.
The JV aims to contribute to India’s ‘Insurance for All’ goal by 2047, offering long-term protection and savings products tailored to different income segments.
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